Quote:
Originally Posted by ravo
The GST is a federal only 5% value added tax (VAT). Most provinces also have a sales (consumption) tax. But, many provinces have merged their taxes with the federal one, creating a HST (Harmonized Sales Tax), which is a VAT-style tax.
Foreign entities selling to Canadian ones are not obligated to collect the tax. Neither is a Canadian company selling to a foreign one. Those are both "tax free".
Transactions between Canadian entities are taxed at the appropriate tax (either GST or HST) based on the province of the buyer.
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some provinces got rid of the HST, and went back to PST/GST.. long story short the HST was applied to a lot more items than the original taxes were, and pissed off a lot of people
also, isn't canadian companies required to collect GST if they are doing business over a certain amount? i know a business over 30k needs to charge GST and will owe it in taxes?